Cryptocurrencies and bitcoin, in particular, are never far from the spotlights these days. Recent months, in particular, have seen several world-scale controversies revolving around the famous cryptocurrency. Now, experts from Nuance and Onfido are sharing their views about how biometric technologies can be used to safeguard cryptocurrency wallets.
Nuance VP urges upgrade to biometrics as crypto wallets protection
Access to cryptocurrency wallets has traditionally been managed by passwords, but Brett Beranek, vice-president and general manager of security and biometrics at Nuance Communications, describes them as “no longer fit for purpose.”
Writing for Information Age, Beranek cited a number of examples in support of this observation, including the infamous loss of millions in bitcoin by an American computer programmer who forgot his password, proposing biometrics as an alternative form of secure authentication.
Beranek highlighted the benefits of voice biometrics algorithms, in particular, explaining how they are capable of analyzing more than 1,000 voice characteristics at once to identify an individual with high levels of precision and efficiency.
Voice biometrics can further be enhanced with behavioral biometrics capable of analyzing typing patterns, how customers hold their phone, and more.
These technologies should now be integrated into crypto wallets, Beranek concluded, to provide secure and effective authentication capable of preventing financial losses.
Onfido discusses cryptocurrency regulations
According to the British firm, the very element that should favor the decentralized nature of cryptocurrency, its need for anonymity, ends up being a hindrance to its security and wider adoption.
To support this point, Onfido mentions a study from Chainalysis claiming that roughly 20 percent (roughly $140 billion worth) of all existing bitcoin is thought to be in lost or inaccessible wallets.
To tackle these issues, Onfido sustains that better know-your-customer (KYC) practices should be implemented, including improved identity verification processes.
The company is already doing this through a partnership with Finnish bitcoin marketplace LocalBitcoins, merging the decentralized nature of cryptocurrency with biometric-enhanced secure authentication.